Revised Laws of Saint Lucia (2021)

PART 4
DESIGNATION OF FUNDS TRANSFER SYSTEM OR SETTLEMENT SYSTEM

11.   Designation of funds transfer systems or settlement system

1.  

   (1)   The Central Bank may designate a funds transfer system or settlement system—

   1.  

      (a)     where that designation is in the public interest;

   1.  

      (b)     on receipt—

      1.  

         (i)     from the Financial Services Regulatory Authority of a copy of a licence issued to a money services business operator accompanied by a recommendation for designation of that money services operator, under section 6(4) of the Money Services Business Act,

      1.  

         (ii)     of information which establishes that a money services business operator who is licensed under the provisions of the Money Services Act is managing a systemically important funds transfer system or settlement system;

   1.  

      (c)     where—

      1.  

         (i)     systemic disruption in the financial system could result if the operator or a system participant goes into insolvency or bankruptcy, and

      1.  

         (ii)     any other matter specified in the regulations warrants designation of the funds transfer systems,

   1.  

           and may impose any restrictions or conditions on the operation of the funds transfer system which the Central Bank deems prudent.

1.  

   (2)   The Central Bank shall inform the money services business operator of its decision to designate the funds transfer system or settlement system and shall publish notification of its decision in the Gazette and any other media.

1.  

   (3)   The Central Bank may in respect of any designation made under subsection (1)—

   1.  

      (a)     impose conditions to which the designation is subject;

   1.  

      (b)     amend or revoke any conditions to which the designation is subject; or

   1.  

      (c)     make the designation subject to a new condition.

1.  

   (4)   A variation of the conditions to which a designation is subject or revocation of designation is not to have retroactive effect.

1.  

   (5)   A variation or revocation does not affect—

   1.  

      (a)     the validity or enforceability of the rules relating to the designated system issued under section 33;

   1.  

      (b)     any payment to or out of the account of a system participant or netting; or

   1.  

      (c)     any settlement that took place prior to the date that the variation or revocation comes into force.

1.  

   (6)   The Central Bank—

   1.  

      (a)     may vary or revoke a designation made under subsection (1) by giving written notice to the designated funds transfer system or designated settlement system;

   1.  

      (b)     shall publish in the Gazette a notice of its decision to vary or revoke a designation made under subsection (1); and

   1.  

      (c)     may publish notice of its decision in any other appropriate media.

1.  

   (7)   For the purpose of this section, “Financial Services Regulatory Authority” means the Financial Services Regulatory Authority established under section 3 of the Financial Services Regulatory Authority Act.